The Best Neighbourhoods to Stay in Madrid

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Discover the best neighbourhoods to stay in Madrid so you can make the most of everything the Spanish capital has to offer. 

Madrid has a number of neighbourhoods that will catch your attention from the moment you arrive. Home to historical monuments, impressive stadiums and an endless array of bars and luxury gastronomy, these areas will have you captivated throughout your stay.  

Our List of the Best Neighbourhoods to Stay in Madrid

Get comfortable and allow us to walk you through the best places to stay on your next trip to the city.

For more information, consult an online travel agency

Puerta del Sol

Madrid is one of the largest cities in Spain, making it an excellent choice for travellers who love adventure. Nowadays, the most sought-after area to stay is the city centre, as this is where most of the popular attractions are located.

Puerta del Sol is a wonderful neighbourhood located right in the centre of the Spanish capital. Considered the ‘kilometre 0’ of most of the roads in the country, Puerta del Sol is surrounded by some of the city’s best sights. This area is known for its lively, commercial atmosphere and houses some of the most prestigious hotels in the world. 

If you choose to stay in Puerta del Sol, you will only have to walk a short distance to reach popular tourist destinations, including Plaza Mayor, the Prado National Museum and the Royal Palace of Madrid.

Exterior of the Royal Palace of Madrid in Spain

Madrid de los Austrias

If you love of historical monuments, you’ve probably heard of Madrid de los Austrias. Within a few metres of this beautiful neighbourhood, you’ll find iconic sights such as the Royal Palace, Almudena Cathedral, Plaza Mayor, Plaza de la Villa and some of the oldest churches in Spain. 

This district is characterised by its very narrow streets, offering visitors a unique insight into what the city would have looked like more than a hundred years ago. Unsurprisingly, it’s one of the best areas to look for hotels in Madrid – now it’s just a matter of booking in advance to find the ideal one for you!

The rooftops of houses in La Latina - the best neighbourhoods to stay in Madrid

La Latina

A smaller neighbourhood that borders Lavapiés and Madrid de los Austrias, La Latina is one of the best places in Madrid to go out for tapas and enjoy a couple of beers in the company of friends. 

We love the fact that it’s just a few kilometres from Plaza Mayor and there are hundreds of restaurants on every corner. If you’re a foodie, this is the place to be. 

The San Isidro Museum, Puerta de Toledo and the Royal Basilica of San Francisco el Grande are some of the attractions you’ll find in this neighbourhood, along with beautiful taverns where you can sample some of the best beers in the city. 

Narrow street in Madrid's Literary Quarter - the best neighbourhoods to stay in Madrid


In fourth place we have Huertas, popularly known as the ‘barrio de las letras.’ This is where famous writers such as Miguel de Cervantes, Quevedo and Lope de Vega lived, making it particularly popular among literary aficionados. It is only five minutes away from Sol on foot, which means that it borders both Madrid de los Austrias and the Prado Museum. 

Huertas is the perfect place to spend an evening, owing to its diverse nightlife offerings that are suited to the quietest and most extroverted of tourists. Within just a short walk, you’ll find monuments such as Plaza de Santa Ana, Casa Museo Lope de Vega, Teatro Español and Teatro Calderón.

Check out our guide to Madrid’s Literary Quarter for more information.

Front of the Prado Museum on a sunny day - best neighbourhoods to stay in Madrid

Paseo del Prado

One of the best areas to stay in Madrid is along the Paseo del Prado, the main boulevard in the city. From here, several cultural monuments are accessible on foot, including the Prado Museum, the Bank of Spain building, Congreso de los Diputados, El Parte del Retiro and Plaza de Cibeles.

It located about 10-15 minutes from Sol and most of the streets are quiet and clean, so you’ll be able sleep peacefully at night. The hotels in the surrounding area are of a very high standard, making it an excellent choice for travellers who aren’t restricted to a tight budget.

Gran Via at dusk - best neighbourhoods to stay in Madrid

Plaza de España y Gran Vía

As public transport hubs, Plaza de España and Gran Vía are two of the most popular areas in Madrid.

La Gran Vía is the most important street in the city, where you will find theatres, shopping centres, cinemas and the headquarters of some of the biggest companies in the country. As you might imagine, it is also home to several high-end hotels. The surrounding area can be easily explored on foot, allowing travellers to experience everything this beautiful city has to offer.

Choosing the Right Neighbourhood

The truth is that Madrid is home to several fantastic neighbourhoods where you can book an excellent stay at the click of a button. The key is to choose a travel agency like Destinia so that specialists can help you choose the best option for you. 

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